Quick Ratio

Quick Ratio Calculator

Measures a company’s ability to meet short-term obligations with its most liquid assets

?Includes cash, bank deposits, and short-term investments
?Money owed by customers (net of allowances)
?Liquid investments that can be sold within 90 days
?Debts and obligations due within one year

Liquidity Analysis

0.00
(Cash + Receivables + Securities) / Current Liabilities
Risk Caution Safe

Interpretation:

The quick ratio evaluates immediate liquidity without relying on inventory sales.

Quick Ratio Standards:

  • Below 0.5: High risk of liquidity problems
  • 0.5-1.0: May struggle to pay bills
  • 1.0-1.5: Healthy liquidity position
  • Above 1.5: Very conservative position

Quick Ratio vs Current Ratio:

The quick ratio is more conservative than the current ratio because it excludes inventory and other less liquid current assets.